Private Placement Industry Insights as of December 31, 2021

Tuesday, January 18th, 2022 and is filed under Industry Reporting

We recently released our December Private Placement Insights report. See the highlights from the report below, or if you are a Premium Reporting subscriber, log in now to see the entire report. If you don’t have access, you can request a free trial.

• Despite continued weakness in energy and some of the real estate categories, December was another strong month for funds added to our coverage, driven primarily by additions to the tax strategies including 1031 exchanges and conservation funds. Additions for the year were lead by private equity/debt followed by hedge funds and 1031 exchanges. Areas that were slower over the year included energy, Opportunity Zones, preferred funds and non-tax focused other real estate LLCs and LPs.
• 297 new funds were added in 2021 making this the strongest year on record putting us well ahead in terms of new fund coverage (+50%) and aggregate target raise (+79%).
• As of January 1st, AI Insight covers 210 private placements currently raising capital, with an aggregate target raise of $21.9 billion and an aggregate reported raise of $10.2 billion or 47% of target.
• Real estate-related funds, including 1031s, Opportunity Zones, and non-1031 real estate LLCs/LPs and private REITs represent the largest component of our private placement coverage at 73% of funds and 57% of target raise. Private equity/debt funds represent 12% of funds and 26% of target raise, although this does include five private market feeder funds that do not specify an offering target.
• In terms of our coverage by general objective, income is the largest component at 56% of funds, while growth and growth & income follow at 28% and 16%, respectively.
• The average size of the funds currently raising capital is $104.1 million, ranging from $5.0 million for a specified real estate fund to $2.0 billion for a private BDC.
• 83% of private placements we cover use the 506(b) exemption, 13% use 506(c) and 6% have not yet filed their Form D with the SEC.
• 60 private placements closed to new investors in December and 256 have closed in 2021. Funds that closed this year have been on the market for an average of 260 days and funds that reported, raised 84% of target.
• ON DECK: there are five new private funds coming soon.

For illustrative purposes only.

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Chart and data as of December 31, 2021, based on programs activated on the AI Insight platform as of this date.

Activated means the program and education module are live on the AI Insight platform. Subscribers can view and download data for the program and access the respective education module.

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